Cost-efficient small scale hydrogen liquefaction

The HORIZON-JU-CLEANH2-2026-02-04 opportunity is a funding initiative under Horizon Europe aimed at fostering research and innovation in small-scale hydrogen liquefaction technologies. Eligible applicants for this program include research organizations, companies of varying sizes (both SMEs and large enterprises), universities, public entities, and non-profit organizations. Participants must be part of a consortium consisting of at least three independent legal entities from different countries, with at least one member from an EU Member State and two from either other EU Member States or Associated Countries.

The funding type exclusively involves lump sum grants, which provide a fixed monetary contribution upon meeting project milestones, thus reducing administrative complexity. The total EU contribution for this initiative is capped at EUR 6.00 million, within a broader indicative budget of EUR 105 million distributed across 21 related topics.

The call particularly focuses on developing hydrogen liquefaction systems for applications generating less than 5 metric tons of hydrogen per day. Projects should start at Technology Readiness Level (TRL) 4 and progress to TRL 6, encompassing tasks such as conceptual design, prototype development, and operational validation.

The objectives include reducing energy consumption in hydrogen liquefaction processes and lowering costs to around EUR 3.5 per kilogram of hydrogen. Key technological components being targeted include cryogenic cooling, pre-cooling systems, and managing boil-off gas. The selected projects must demonstrate enhancements over existing technologies and develop credible business models for commercialization.

Projects are expected to operate on a timeline starting with applications being accepted from February 10, 2026, with a submission deadline of April 15, 2026, at 17:00 CEST. Successful proposals will significantly contribute to advancements in the EU's hydrogen economy and support its strategic goals for clean energy transition. Co-funding is encouraged but not mandated, and significant involvement from relevant stakeholders and national programs is anticipated.

General conditions for eligibility stipulate that subcontracted work must occur within EU Member States or Associated Countries, ensuring that funding directly contributes to the EU's industrial landscape. The application process is structured as a single stage, with comprehensive guidelines available for submission, evaluation criteria, and conditions pertaining to co-funding and preparation. This initiative aims to position Europe as a competitive leader in the hydrogen sector by scaling up the production and commercial viability of small-scale liquefaction technologies essential for the future hydrogen economy.

This is a call for proposals under the Horizon Europe program, specifically the Clean Hydrogen Joint Undertaking (JU), focusing on cost-efficient small-scale hydrogen liquefaction. The call, HORIZON-JU-CLEANH2-2026-02-04, aims to foster research and innovation actions (RIA) to overcome technological barriers and advance the deployment of decentralized hydrogen liquefaction technologies. The goal is to enable efficient and cost-competitive hydrogen liquefaction for applications with lower liquid hydrogen (LH2) demand, such as remote transportation hubs, off-grid communities, and industrial facilities.

The expected outcomes of successful projects include contributing to the roll-out of next-generation decentralized hydrogen liquefaction technologies and initiating the deployment of liquid hydrogen for off-takers with lower LH2 demand. The projects should also contribute to the Clean Hydrogen JU Strategic Research and Innovation Agenda (SRIA) objectives and key performance indicators (KPIs), such as increasing the efficiency and reducing the costs of hydrogen liquefaction technologies for small-scale liquefaction (less than 5 tons per day), reducing the energy intensity for small-scale hydrogen liquefaction to 12 kWh/kgH2 at 500kg/day and 10 kWh/kgH2 at 5 tpd, and reducing H2 liquefaction cost to about 3.5 €/kg.

The scope of the call encompasses the entire hydrogen liquefaction process, including pre-cooling, cooling, coldbox, expansion, and boil-off gas management. Proposals should address the following elements: assessment of currently offered technologies for small-scale liquefaction plants (less than 5 tpd), description of proposed technology elements (O-P conversion, precooling to 80-110 K, cryogenic cooling to 20-30 K, handling/re-liquefaction of gas return from adjacent storage), conceptual design optimization at system scale, and development of an innovative small-scale hydrogen liquefaction system. The innovative system should demonstrate technical and economic improvements at scale (at least >500 kg/day) with a potential for scaling up, reduce energy consumption and specific cost, operate at lower and/or fluctuating load (50-100 %), and demonstrate a specific power consumption of 12 kWh/kg for 500 kg/day liquefaction capacity.

The focus areas include reducing specific energy requirements through optimized pre-cooling, innovative thermodynamic optimization, and improved boil-off recovery strategies; evaluating the cost-benefit of handling/re-liquefaction of gas return from adjacent storage; conducting advanced thermal studies to optimize small-scale units; creating a system’s oriented Digital Twin to support the design phase and assess scalability; and validating an industrial prototype to prove scalability up to 5 tpd. The proposed technology should be benchmarked against commercially available technologies based on the Helium Brayton and Claude cycles at 1 tpd and 5 tpd, demonstrating reduced liquefaction cost.

Proposals should also address economic and regulatory issues, including demonstrating a specific liquefaction cost of around 3.5 €/kg for a small-scale unit (1 tpd), defining a roadmap for deploying small volumes of liquid hydrogen solutions, performing techno-economic analysis to identify CAPEX and OPEX drivers and assess scalability, performing conceptual design optimization, proposing accurate business models, and contributing to the development of regulations, codes, and standards for LH2 safety. Sustainability and circularity aspects should also be addressed.

Activities are expected to start at Technology Readiness Level (TRL) 4 and reach TRL 6 by the end of the project. The Clean Hydrogen JU estimates a maximum EU contribution of EUR 6.00 million for this topic.

General conditions for admissibility, eligible countries, and other eligibility criteria are detailed in the Horizon Europe Work Programme General Annexes. The proposal page limit and layout are described in Part B of the Application Form available in the Submission System. The page limit for Innovation Actions is 70 pages.

Additional eligibility conditions include limitations on the maximum Clean Hydrogen JU contribution for specific topics and a membership requirement for certain topics, where one partner in the consortium must be a member of either Hydrogen Europe or Hydrogen Europe Research.

Evaluation and award criteria, submission and evaluation processes, and the indicative timeline for evaluation and grant agreement are described in the Work Programme General Annexes and the Online Manual. A STEP (Sovereignty) Seal may be awarded to proposals exceeding all evaluation thresholds for Hydrogen Valleys topics.

Eligible costs will take the form of a lump sum, as defined in the Decision of 7 July 2021. Specific provisions in the model grant agreement include the use of lump sums, the possibility of declaring full capitalized costs for specific equipment, infrastructure, or other assets, an additional obligation regarding subcontracting (work must be performed in target countries), and an additional information obligation for topics including standardisation activities.

Application form templates and evaluation form templates are available in the Submission System. Additional guidance and documents include the HE Programme Guide, Model Grant Agreements, call-specific instructions, the Clean Hydrogen JU Annual Work Programme 2026, the Strategic Research and Innovation Agenda, Lump Sums Guidance, and FAQs.

The call aims to support the development and deployment of cost-effective and energy-efficient small-scale hydrogen liquefaction technologies, which are crucial for enabling the widespread adoption of hydrogen in various sectors. By addressing the technological, economic, and regulatory challenges associated with small-scale liquefaction, this call seeks to accelerate the transition to a sustainable hydrogen economy. The call is structured as a single-stage process with a planned opening date of February 10, 2026, and a deadline of April 15, 2026. The total budget allocated to this call is 105,000,000 EUR.

Eligible Applicant Types: The eligible applicant types are not explicitly stated, but based on the nature of Horizon Europe and Clean Hydrogen JU, they are likely to include: research organizations, universities, SMEs, large enterprises, and other relevant stakeholders involved in hydrogen technology and infrastructure development. Given the emphasis on industrial involvement and demonstration, participation from industrial stakeholders and end-users such as public authorities is highly encouraged. Membership in Hydrogen Europe or Hydrogen Europe Research is an additional eligibility criterion for certain topics, suggesting that industrial and research partners are key applicants.

Funding Type: The funding type is primarily a grant, specifically a lump sum grant under the Horizon Europe Programme. The call also mentions Research and Innovation Actions (RIA), Innovation Actions (IA), and Coordination and Support Actions (CSA), each implying different levels of funding and project focus.

Consortium Requirement: While not explicitly stated for all topics, the additional eligibility condition regarding membership in Hydrogen Europe / Hydrogen Europe Research for certain topics implies that a consortium is required, with at least one member being part of either Hydrogen Europe or Hydrogen Europe Research. Partner search announcements are available, suggesting that consortia are common and encouraged.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes Member States of the European Union and Associated Countries. Non-EU/non-Associated Countries may also be eligible if they have made specific provisions for funding their participants in Horizon Europe projects. Subcontracting must be performed in target countries, which include all Member States of the European Union and all Associated Countries.

Target Sector: The program targets the hydrogen sector, specifically focusing on cost-efficient small-scale hydrogen liquefaction. It also touches upon related areas such as energy, transportation, remote communities, and industrial facilities.

Mentioned Countries: The call explicitly mentions Member States of the European Union and Associated Countries as target countries for subcontracting. It also refers to non-EU/non-Associated Countries that have specific provisions for funding participants in Horizon Europe projects.

Project Stage: The expected maturity of the project is between Technology Readiness Level (TRL) 4 and TRL 6. Activities are expected to start at TRL 4 and achieve TRL 6 by the end of the project.

Funding Amount: The JU estimates that an EU contribution of maximum EUR 6.00 million would allow these outcomes to be addressed appropriately for the topic HORIZON-JU-CLEANH2-2026-02-04. Other topics within the call have different maximum contribution amounts, ranging from EUR 1.5 million to EUR 17 million.

Application Type: The application type is an open call, with a single-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of lump sum contributions. Full capitalised costs for purchases of equipment, infrastructure, or other assets may be exceptionally declared for certain topics.

Application Stages: The application process involves a single stage.

Success Rates: The success rates are not explicitly mentioned in the provided text.

Co-funding Requirement: Co-funding is expected, especially for actions performed at high TRL levels, including demonstration in real operational environments. The additional eligibility criterion regarding maximum contribution per topic suggests that projects are expected to leverage co-funding as a commitment from stakeholders. For Hydrogen Valleys topics, a large amount of co-investment/co-funding from project participants/beneficiaries, including national and regional programs, is expected.

This opportunity is part of the Horizon Europe program under the Clean Hydrogen Joint Undertaking (JU) and aims to foster research and innovation in cost-efficient small-scale hydrogen liquefaction. The goal is to develop and deploy next-generation decentralized hydrogen liquefaction technologies, making liquid hydrogen more accessible for various applications, including remote transportation hubs, off-grid communities, and industrial facilities with lower hydrogen demand. Projects should focus on overcoming technological barriers, reducing energy consumption and costs, and ensuring the scalability and sustainability of the proposed solutions. The funding is provided as a lump sum, and projects are expected to start at TRL 4 and reach TRL 6 by completion. Collaboration through consortia is encouraged, particularly with members of Hydrogen Europe or Hydrogen Europe Research for specific topics. The geographic scope includes EU Member States and Associated Countries, with potential participation from non-EU countries under certain conditions. The call emphasizes the importance of industrial involvement, demonstration in real-world environments, and alignment with the Clean Hydrogen JU's Strategic Research and Innovation Agenda (SRIA).